Here's what MTN's proposed Telkom takeover deal could mean for SA's telecoms sector.
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MTN on Friday stated its intention to buy out its partially state-owned competitor Telkom, a move that sent the share price of the former fixed-line operator rocketing.
If the deal is concluded, it could have major implications for telecommunications. While Vodacom retains the largest mobile market share, MTN is currently in second place, followed by Telkom - which, through an increased digital focus, has inched into third place, ahead of Cell C.
If the Telkom takeover goes through, it could significantly increase MTN's overall market share, effectively creating a duopoly between itself and Vodacom, its main rival. It is also a move that would certainly arouse competition concerns, amid ongoing public concerns about the high cost of communication.
If the deal is concluded, it could have major implications for telecommunications. While Vodacom retains the largest mobile market share, MTN is currently in second place, followed by Telkom - which, through an increased digital focus, has inched into third place, ahead of Cell C.
If the Telkom takeover goes through, it could significantly increase MTN's overall market share, effectively creating a duopoly between itself and Vodacom, its main rival. It is also a move that would certainly arouse competition concerns, amid ongoing public concerns about the high cost of communication.
